cash equivalents
long-term investments
inventories
short-term investments
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Answer is Wrong!
The correct answer is B. long-term investments.
Securities with less predictable prices and have longer maturity time are considered as long-term investments. This is because these securities are not expected to be converted into cash within one year. They are held for a longer period of time in order to generate income or capital appreciation.
Cash equivalents are short-term, highly liquid investments that are readily convertible into
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cash and are essentially risk-free. Examples of cash equivalents include money market funds, short-term treasury bills, and commercial paper.
Inventories are assets that a company holds for sale in the ordinary course of business. They include raw materials, work-in-progress, and finished goods.
Short-term investments are investments that a company expects to convert into cash within one year. They include marketable securities, such as stocks and bonds, and short-term loans.
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